Observations on Prospectus for the Renovation of U.S. Customhouse, New York City

The economic analysis supporting the prospectus of the General Services Administration (GSA) to renovate the U.S. Customhouse in New York City to permit it to be used as office space for federal agencies, while preserving it as an historical landmark was reviewed. As a registered historic landmark, the Customhouse is subject to certain legal and administrative restrictions regarding its preservation and restoration.

The prospectus submitted by GSA did not reasonably portray the present value life cycle costs of the three alternatives of renovating the Customhouse, constructing a new building, or leasing equivalent space. If the Customhouse could be sold at the appraised value, leasing would be substantially less costly. If not, renovation and use of the Customhouse might be more favorable economically unless some excluded costs, such as major building repairs, are significant enough to affect the comparison.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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